TLDR
- Nvidia shares climbed 0.5% to $189.73 in premarket trading Friday, extending Thursday’s 0.9% gain
- Japanese tech firm Fujitsu announced expanded AI collaboration targeting healthcare, manufacturing, and robotics applications
- Management forecasts data center spending will surge from $600 billion in 2025 to $3-4 trillion by 2030
- UAE chip purchase plans delayed amid Commerce Department negotiations over investment agreements
- Stock has soared over 1,100% since early 2023 with market cap now exceeding $4.5 trillion
Nvidia stock edged higher in Friday’s premarket session, gaining 0.5% to reach $189.73. The move follows Thursday’s 0.9% advance as investor enthusiasm for artificial intelligence technology shows no signs of slowing.
The chip maker’s market capitalization has crossed $4.5 trillion this week. OpenAI’s recent $500 billion valuation has reinforced confidence in AI infrastructure investments.
Fujitsu unveiled plans Friday to deepen its collaboration with Nvidia. The partnership will focus on developing AI agent platforms for healthcare, manufacturing, and robotics sectors.
AI agents represent software that can interpret simple instructions and execute complex tasks across multiple steps. Fujitsu aims to penetrate new markets in traditionally difficult domains through the Nvidia collaboration.
The companies will develop computing infrastructure combining Fujitsu’s central processing units with Nvidia’s graphics processing units and networking solutions. Neither company disclosed financial terms of the agreement.
Data Center Investment Boom
Nvidia management projects global data center capital expenditures will reach $600 billion in 2025. That figure could balloon to $3-4 trillion by 2030 according to company forecasts.
The chip maker commands 90% market share in data center GPUs. These processors excel at parallel computing, making them essential for AI model training and inference workloads.
Supply constraints persist across the industry. Major technology companies coordinate directly with Nvidia to secure chip allocations for upcoming data center projects.
Nvidia stock trades at 40 times forward earnings. The valuation aligns with levels from approximately one year ago and represents the upper end of its three-year trading range.
Shares have skyrocketed more than 1,100% since January 2023. The explosive growth reflects sustained demand for AI hardware and Nvidia’s market dominance in GPU technology.
Middle East Deal Faces Hurdles
The United Arab Emirates planned to purchase several hundred thousand Nvidia chips annually. The arrangement included reciprocal investment commitments in the United States.
Commerce Department negotiations have stalled the deal’s implementation. The Wall Street Journal reported Thursday that discussions continue between relevant parties.
An Nvidia spokesperson confirmed the company’s support for the administration’s AI initiatives. “President Trump’s Middle East agreements promote U.S. leadership and benefit economic and national security,” the statement read.
Rival chip makers also posted gains Friday morning. Advanced Micro Devices shares rose 1% while Broadcom advanced 1.5% in premarket trading.
Nvidia’s customer relationships provide visibility into industry trends. Major clients share data center construction timelines and capacity requirements months in advance.
The Fujitsu partnership expands Nvidia’s reach into specialized AI applications. Healthcare and manufacturing represent growth opportunities as companies adopt AI agent technology for automation and decision-making tasks.
GPU scarcity means enterprise customers must plan purchases well ahead of deployment schedules. This dynamic gives Nvidia’s management team unique insight into future demand patterns across multiple industries and geographic regions.
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